$25K in the bank - How should I start investing?

Question

Hello -

I am really interested in beginning to invest in real estate particularly multi-family properties. I have about $25k in the bank. Has anyone started with about this much money and have any advice on the best way to begin your investing career? Things you would do differently? Any general investing advice? Looking forward to being an active part of this community.

Eric Bilderback · Answer

4-plex see on top of that I would get an FHA/VA loan.  That is exciting in 10 years you could be a very wealthy man.  Plan on doing the same in 2 years with a conventional loan.

Congrats,

Steve Vaughan · Answer

I would probably go back and house-hack a 2-4 unit plex.  Live in one unit and rent out the other(s).  Move a year or so later and do it again.

Residential owner-occ loans are awesome.  Do you have family and such that might prevent this strategy from being viable to you @Nicholas Lisauskas?

Whatever you do, just keep it simple.  Welcome and congrats on saving a nice chunk of change!

Mark B. · Answer

IMO, i'd do what the above people have said.  Try to grab a 2-4 unit with FHA and live in one of the units (Assuming its not an emergency fund like @jd martin said).

With 25k, i'd aim to put down around 10k at most (around 300k property), try to get some seller assist and all together be in for less than 15-20k.  That way you still have 5-10k as reserves (I'm just throwing numbers around and i'm not sure exactly how much it would be for closing but you get the idea :D )

JD Martin · Answer

Is that exclusive of an emergency fund, or every dollar you've got? If that's just "play" money, then you look to be in position to find something you can go 80/20 with the bank, especially if you don't already own a house and can "house-hack" - i.e. live in the house while you force appreciation through improvement or waiting out the market.

$25K in the bank - How should I start investing?

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